SBM

State Bank of Mysore (SBM) has shown a jaw dropping performance for Q2FY15. SBM reported a 239% (YoY) and 115% (QoQ) rise in net profit at Rs.102 crore. The Bank has stated that what really helped was the cut in lending to corporates and industries. It cut bulk deposits by 11% form 20% (YoY) plus tax concessions along with cut in costs helped boost the profit. Higher interest income, better recovery from accounts written off as bad and lower provisions is what truly helped.

NII rose 5% (YoY) at Rs.514 crore with a 26% jump in other income. Asset quality improved with Net NPA at 2.94% v/s 3.69% (YoY) though sequentially, it was up from 2.72%. Gross NPA did much better at 5.07% v/s 5.13% (QoQ) and 6.56% (YoY). Provisioning has come down from Rs.229 crore to Rs.162 crore (YoY) though sequentially, it rose from Rs.198 crore. Besides improving the current account and savings account (CASA) ratio by 189 bps to 34.52%, the bank’s net interest margin (NIM) continues to be healthy at 3%.